As to setting ad budgets, 47% of respondents (eight) fix these as a percentage of sales, 18% (three) base their budget on volume forecasts, and 12% (two) on corporate goals; the remainder (four) calculate them via a miscellany of metrics.

Assuming budget targets are not achieved, 31% (five) said they will slash spending to hit target. Conversely, 23% (four) said they would consider upping spend to stimulate sales. Other factors impacting on ad expenditure were corporate goals, market share and competitive issues.

Interestingly, 88% of companies (fifteen) are either negotiating a change of compensation packages with their ad agencies – or have already done so.

The Thundering Herd remained silent about actual dollar spend, atoning for this with much noise about percentages. Good PR copy – if not market research.

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